BlackBerry loses US$1bn, axes 4500 staff
BlackBerry says it will lay off 4500 employees, or 40 per cent of its global workforce, as it reports a nearly US$1 billion (NZ$1.2b) second-quarter loss in a surprise early release of earnings results.
The stock dropped 19 per cent to US$8.50 after reopening for trading. Shares had been halted pending the news.
BlackBerry had been scheduled to release earnings next week. But the Canadian company said late Friday afternoon it expects a loss of about US$950 million to US$995 million for the quarter, including a massive inventory charge due to increasing market competition.
The BlackBerry, pioneered in 1999, was the dominant smartphone for on-the-go business people and other customers before Apple debuted the iPhone in 2007. Since then, BlackBerry Ltd. has been hammered by competition from the iPhone as well as Android-based rivals like Samsung.